Gearing and Plant: Difference between pages

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1. <br />
1. ''Psychometric profiling - Belbin team roles.''
<i>Financial gearing</i> measures the relative amount of debt in a firm's capital structure.<br />
Gearing is sometimes also known as <i>leverage</i>.


Plant is one of the nine clusters of individual behaviours identified in the Belbin team roles model.


Gearing and leverage ratios can be calculated in several different ways, so consistency of approach is important.


Characteristic '''''behaviours''''' of the plant role include:
* High creativity
* Generating ideas
* Solving difficult problems in unconventional ways


Two essential bases to define are:


Related ''strengths'' include creativity, imagination and free-thinking.


i. The use of book or market values.<br />
ii. The use of Debt divided by Equity (D/E) or of Debt divided by Debt plus Equity = D / (D+E).


Associated ''weaknesses'' may include ignoring incidentals, preoccupation preventing effective communication, absentmindedness and forgetfulness.


<span style="color:#4B0082">'''Example 1: Calculation of gearing'''</span>


<i>Gearing</i><br />
2.
Assume the values of debt and equity are equal, say USD 1m each.<br />
D/E = 1/1 = 100%.<br />
This is usually known as 'gearing'.


Plant can also refer to heavier and longer term items used in a business operation.


<span style="color:#4B0082">'''Example 2: Calculation of leverage'''</span>
Agricultural bearer plants include certain trees and bushes.


<i>Leverage</i><br />
Using the other calculation with the same inputs (D = 1 and E = 1):<br />
D / (D+E) = 1/2 = 50%.<br />
This is usually known as 'leverage'.


3.


<b>Adjustments to D and E figures</b><br />
A plant can also mean an entire operational site and all of its equipment.
With respect to the Debt figure, practice varies in including or excluding certain items such as cash, short term borrowings, leases, pensions and other provisions.<br />
Practitioners may also adjust the Equity figure, for example to exclude intangible assets.


For example, an integrated water and power plant.


2. <br />
<i>Operational gearing</i> relates to the operating costs of a business, and measures the relative proportions of fixed and variable operating costs.
3. <br />
'Gearing up' refers to increasing the levels of financial or operation gearing - or both - within an organisation.<br />
The intention of gearing up is to improve expected net results.  <br />
A consequence of gearing up is normally to increase risk.
Many financial disasters have been a consequence of gearing up (or leveraging) excessively in this way in earlier periods.




==See also==
==See also==
 
* [[ACT Competency Framework]]
* [[Debt equity ratio]]
* [[Bearer plant]]
* [[Debt to equity ratio]]
* [[Behavioural skills]]
* [[Intangible assets]]
* [[Belbin team roles]]
* [[Leverage]]
*[[Completer finisher]]
* [[Leveraged]]
* [[Co-ordinator]]
* [[Leveraged takeover]]
*[[Implementer]]
* [[Levered]]
*[[Integrated water and power plant]]
* [[MCT]]
*[[Monitor evaluator]]
* [[Off-balance sheet finance]]
*[[Plant and machinery allowances]]
* [[Ungeared]]
*[[Property, plant and equipment]]
* [[Ungeared cash flow]]
*[[Psychometric profiling]]
*[[Resource investigator]]
*[[Shaper]]
*[[Specialist]]
*[[Teamworker]]
* [[Working effectively with others]]




===Other links===
==External link==
[http://www.treasurers.org/node/8012 Masterclass: Measuring financial risk, The Treasurer, July 2012]
[https://www.belbin.com/ Belbin Team Roles webpage]


[[Category:Corporate_finance]]
[[Category:Commercial_drive_and_organisation]]
[[Category:Influencing]]
[[Category:Self_management_and_accountability]]
[[Category:Working_effectively_with_others]]
[[Category:Planning_and_projects]]

Latest revision as of 14:10, 26 March 2020

1. Psychometric profiling - Belbin team roles.

Plant is one of the nine clusters of individual behaviours identified in the Belbin team roles model.


Characteristic behaviours of the plant role include:

  • High creativity
  • Generating ideas
  • Solving difficult problems in unconventional ways


Related strengths include creativity, imagination and free-thinking.


Associated weaknesses may include ignoring incidentals, preoccupation preventing effective communication, absentmindedness and forgetfulness.


2.

Plant can also refer to heavier and longer term items used in a business operation.

Agricultural bearer plants include certain trees and bushes.


3.

A plant can also mean an entire operational site and all of its equipment.

For example, an integrated water and power plant.


See also


External link

Belbin Team Roles webpage